CORNYN JOINS EFFORT TO END ILLEGAL SALE OF "BIDIS"

States crack down on Internet sale of tobacco product to minors

AUSTIN - Texas Attorney General John Cornyn
announced today that Texas will take
enforcement action against Internet merchants accused of selling a tobacco product known as "bidis"
to minors. In addition, the National Association of Attorneys General (NAAG) in a letter to members
of Congress, the U.S. Department of Health and Human Services, U.S. Customs and the Federal
Trade Commission, has asked the Federal Government to enforce laws to ensure "bidis" are not
available to children in the U.S.

"This clearly illegal and predatory business practice must come to an end," said Attorney General
Cornyn.

"Bidis" are small, brown, hand-rolled cigarettes produced primarily in India. These cigarettes,
popular among smokers for their flavor, contain more than three times the amount of nicotine and
more than five times the amount of tar than regular cigarettes. Additionally, "bidi" smokers are at
greater risk of developing life-threatening diseases such as cancer and heart disease. These cigarettes
are readily available to minors over the Internet.

Over the last six weeks, the Texas attorney general's office and offices of 16 other state attorneys
general supervised Internet and telephone purchases of "bidis." In most cases, children and
investigators were able to order "bidis" and have them delivered to the address they supplied. The
Internet sellers and telephone operators did nothing to verify the ages of the purchasers during the
transactions.

In Pennsylvania, a 9-year-old successfully bought "bidis" over the telephone. When asked to fax a
copy of his driver's license, the child sent a 38-year-old undercover agent's license. The company did
not further question the child's age. In Texas, an investigator attempted to make four "bidis"
purchases through the Internet without providing his age. Three of the companies filled his order, the
fourth company indicated in a letter that they were out of stock.

As part of its enforcement action, Texas is sending warning letters to on-line companies found
selling "bidis" to children. Citing Federal Food and Drug Administration's regulations and the Texas
Deceptive Trade Practices Act, the letter requires violators to sign a cease-and-desist agreement to
avoid legal action. The signed document will become public record and could be used as evidence in
future court proceedings. Noncompliance or failure to return the letter will result in a review of
possible legal alternatives.